YNAP Q3 revenues rise 19 percent

Yoox Net-A-Porter Group (YNAP) revenues in the third quarter of 2016, of 435.4 million euros (476 million dollars), increased 19 percent on an organic basis or 16.8 percent at constant FX and 11.7 percent reported, marking an acceleration on the first half of the year. This quarterly performance contributed to net revenues of 1,332.5 million euros (1,456 million dollars) in the first nine months, up 17.1 percent on an organic basis, 16.1 percent at constant FX and 12.8 percent reported.

In the first nine months, Yoox-Net-A-Porter recorded a monthly average of 27.5 million unique visitors, which translated into 5.9 million orders, up18.3 percent. Active customers also increased to 2.8 million at September 30, 2016 compared with 2.3 million at September 30, 2015.

Review of consolidated net revenues by business lines

In the third quarter, the multi-brand in-season business line, which includes Net-A-Porter and Mr Porter, recorded consolidated net revenues of 215.1 million euros (235 million dollars), up 19.1 percent on an organic basis. Including the performance of TheCorner and Shoescribe - which were discontinued at the end of August 2016, thus not contributing to the September results - this business line grew 14.7 percent at constant exchange rates or 7.2 percent.

This quarterly performance resulted in net revenues of 705.2 million euros (770 million dollars) in the first nine months, up 15.4 percent on an organic basis, 13.6 percent at constant exchange rates or 9.5 percent reported. At 30 September 2016, the multi-brand in-season business line accounted for 52.9 percent of the group’s consolidated net revenues.

In the third quarter, the multi-brand off-season business line, which includes Yoox and The Outnet, recorded consolidated net revenues of 178 million euros (194 million dollars), up 19.5 percent at constant exchange rates or 16.8 percent reported. This performance translated into net revenues of 496.2 million euros (541 million dollars) in the first nine months, up 20.8 percent at constant exchange rates or 18 percent reported. The multi-brand off-Season business line accounted for 37.2 percent of the group’s consolidated net revenues.

The online flagship stores business line achieved consolidated net revenues of 42.4 million euros (46 million dollars) in the third quarter, up 16.8 percent at constant exchange rates or 14.7 percent reported. Gross merchandise value advanced by 25.7 percent on an organic basis, 25.5 percent at constant exchange rates, or 24 percent reported, driven by the outstanding performance of the joint venture with Kering. This quarterly result led the business line to achieve consolidated net revenues of 131.1 million euros (143 million dollars) in the first nine months, up 13.1 percent at constant exchange rates or 12 percent reported. Gross merchandise value was up 17.3 percent on an organic basis, 17.3 percent at constant exchange rates or 16.5 percent reported.

Consolidated net revenues rose across geographies

Yoox Net-A-Porter Group recorded positive organic growth across all of its key markets over the period. North America posted 17.8 percent at constant FX or 16.9 percent reported in the third quarter. Net revenue growth in North America was 14.2 percent at constant exchange rates in the first nine months or 13.9 percent reported. Italy posted net revenue rise of 11.4 percent or 11.6 percent at constant exchange rates in the third quarter. This quarterly performance led to net revenue rise of 16.3 percent or 16.4 percent at constant exchange rates.

In the third quarter, the UK however registered a slowdown in net revenue growth on the first half of the year as a result of the Brexit vote, with net revenues up 13.5 percent at constant exchange rates or down 5.4 percent. In the first nine months, UK net revenues were up 14.8 percent at constant exchange rates or 4 percent reported. Europe (excluding Italy and the UK) grew 7.7 percent at constant exchange rates in the third quarter or 5.9 percent reported. Nine-month net revenues were up 14 percent at constant exchange rates or 11.4 percent reported.

Asia Pacific achieved a very strong performance, with net revenues up 36.8 percent at constant exchange rates in the third quarter or 33.9 percent reported), with top-line growth accelerating on the first half on the back of strong momentum in China, Hong Kong and Japan across all the online stores. This resulted in a net revenue increase of 23.8 percent at constant exchange rates in the first nine months or 21.9 percent reported. Finally, rest of the world third-quarter net revenue grew 19 percent at constant exchange rates or 2.5 percent reported, translating into net revenues up 18.8 percent at constant exchange rates in the first nine months or 9.8 percent reported.

Picture:Net-A-Porter